Construction contracts - The Basics
A good construction contract is vital to any business. It is also important as one of the components to show your customers that you are serious contractor. A good contract will help to clarify matters with your client, will clearly state that rights and remedies of the client and will help set expectations. A good contract form is a start but also the completion of the contract for the specific variables of a job are important.
A. Several years ago, I had a call from a client who had hired a contracting friend to put a new roof on his house, to replace some rotted trim and wood and to paint the house. The entire job was approximately $15,000. There were major problems with the work that had been performed, including a failure to meet county codes for the roof installation. I asked for a copy of the contract. My client faxed me a handwritten sheet of paper that said "Fix roof and other house problems, paint -- $15,000." The "contract" should have been one of the first indicators that the contractor did not exhibit true professionalism.
A good contract should at a minimum specify the work to be performed with some specifics, the payment terms, the default terms, the rights and remedies of both contractor and the client, the start and completion dates, and the standards and other factors by which the job should be judged. There are some legal disclosures which may be required for some jobs.
A. Under the 3-day Cooling-Off Rule, sales covered are sales for $25 or more that are made at the buyer’s home, workplace or dormitory, or at facilities rented by the seller on a temporary or short-term basis, such as hotels, convention centers, fairgrounds and restaurants. The rule also applies when the buyer invites the sales person to their home. The Rule does not apply to sales that begin as retail transactions at a business establishment, and are completed with the signing of a contract in a consumer's home. For instance, ordering carpet at a store and signing the contract when someone comes to the consumer's home to measure floor space. Making a phone call to create an appointment for a sales person to come to the home is NOT a retail transaction that began at the business establishment.
The salesperson must tell the consumer (does not include a B2B transaction) about their cancellation rights at the time of sale and give the consumer two copies of a cancellation form (one to keep and one to send) and a copy of the contract or receipt.
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